If the cloud is so great, why are so many businesses unsatisfied?


Cloud computing has become common in enterprise IT, and the hype around it remains as adoption soars. Research by IDG shows that 70 percent of enterprises currently use at least one cloud application, and in 2018, organizations with cloud-only IT infrastructure will become the majority.

The global market for cloud services was worth $148 billion in 2016, according to Synergy Research Group, and it is growing by 25 percent annually. Amazon Web Services (AWS) alone reached $3.23 billion in revenue in the third quarter of 2016, while Microsoft Azure, the second-largest cloud provider, announced Thursday that revenue has nearly doubled in the past year, giving it an annual run rate of $14 billion.

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Matching the hype to the earnings of these hyperscale providers is relatively easy because their brands are widely known. Their earnings information is also shared because their stock is publicly traded. The numbers also make great headlines. They hardly tell the full story, however.

Over a third of enterprises find that cloud implementations fail to live up to the hype, and half say they deliver only some of their expected benefits, according to a survey of CIOs by Vanson Bourne. What is the reason for the disappointing results?  

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